Readers of these blog posts should be aware that I have a great interest in artificial intelligence (AI) and have been intensely following it for a few years; even before ChatGPT! Most moderately aggressive client accounts had a small exposure to the first AI-driven investment strategy way back in 2019; now named Amplify Ai Powered Equity ETF (AIEQ).
Unfortunately, this strategy did not have persistent repeatable risk-adjusted performance in the early days of its launch so it was sold from all client accounts during 2023. This ETF continues to struggle over the past year with its risk-adjusted return lagging the S&P 500 (IVV) over multiple time frames.
So, when does AI become a factor in investment management? Will it ever replace a living breathing human and outperform on a consistent basis (excluding luck)? To answer these questions I am planning to attend a series of seminars sponsored by the CFA Society Boston over the next few months.
The first seminar is on June 3, 2025 and covers how AI will interact at each intersection of the investment value chain and explore the technologies used to get there with case studies. Speakers from Google, Amazon and quant investment firms are scheduled to participate.
Stay tuned! D&A will stay focused on cutting-edge technology and ensure that we are fulfilling our fiduciary duty by staying up to date on industry best practices!